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Russia secretly bought technology from Royal IHC and others to protect its nuclear subs

Posted on October 27, 2025

A DredgeWire Exclusive:

The Washington Post and eight other media sources from around the world including the French paper Le Monde have collaborated on an investigation called “Russian Secrets” exposing sales by Dutch marine technology companies of products helping Russia develop a system called “Harmony” to conduct surveillance on western submarines.

Here is the Washington Post story which is worth reading.

Here is a summary of what transpired:

A recent investigative report reveals that Dutch maritime company Royal IHC, along with other Dutch firms, delivered over $8 million in technology and products for a secret Russian naval project between 2017 and 2019. The controversy centers on the fact that these deliveries were routed through a Cypriot shell company, Mostrello Commercial Limited, which Royal IHC only placed on an internal blacklist years later, in 2021.

The investigative findings

The investigation, titled “Russian Secrets,” was a collaborative effort by journalists from Dutch news program Pointer, German broadcaster NDR, French newspaper Le Monde, and The Washington Post. 

Key findings from their reporting include:

  • The Russian Ministry of Defense used a network of shell companies to acquire sensitive Western technology for use in its defense projects.
  • The acquired products, which included civil maritime technology from Royal IHC, were used to outfit a specialized vessel intended to protect Russian nuclear submarines.
  • The transaction was carried out via a Cypriot shell company, Mostrello Commercial Limited.
  • Deliveries occurred between 2017 and 2019, at a time when Western sanctions were already in place against Russia following the 2014 annexation of Crimea. 

Royal IHC’s response and explanation

Royal IHC has publicly addressed the controversy in a statement on its website. 

The company’s position is as follows:

  • Due diligence process: According to Royal IHC, it followed its strict due diligence process at the time of the deliveries. The screening included checks on the parties, destination, and intended use of the products.
  • No sanctions violations: The company asserts that its screening “did not yield any adverse findings or irregularities” and that Mostrello was not on any sanctions list during the transaction period. Royal IHC maintains the transactions met all applicable regulations at the time.
  • Proactive blacklisting: Royal IHC proactively placed Mostrello on its internal blacklist in 2021, after receiving a signal from UK authorities that any future deliveries would require an export license. This action was taken as a precaution and in line with the company’s integrity principles.

Broader context

The revelations are part of a larger, ongoing international investigation into Russia’s network for acquiring restricted technology from Western countries. The case highlights the challenges of enforcing sanctions and export controls, particularly when shell companies are used to obscure the final recipient of the technology. 

Here is the formal statement by Royal IHC Royal IHC in response to the disclosures.

https://www.royalihc.com/news/royal-ihc-explains-procedures-regarding-deliveries-2017-2019

Here is the “Russian Secrets” story as published by Le Monde.

https://www.lemonde.fr/en/les-decodeurs/article/2025/10/23/russian-secrets-how-russia-built-an-arctic-spy-network-using-european-equipment_6746699_8.html

A Dutch source has additional information and insight. See below:

https://nltimes.nl/2025/10/23/8-million-worth-dutch-technology-secret-russian-defense-project-report

When DredgeWire reached out to Royal IHC for further comment, they replied they had nothing else to add to the formal comment on their website.

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